Skyhawk
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RE: Does ESPN want to get rid of the PAC?
(01-07-2023 02:03 PM)JRsec Wrote: (01-07-2023 01:09 PM)Skyhawk Wrote: (01-07-2023 10:49 AM)JRsec Wrote: Okay, now you've looked at it mostly from ESPN's perspective. Let's augment that a bit for the sake of discussion and then look at it from the perspective of some schools.
First, I chimed in on what looked like a rather innocuous thread about average attendance. That thread however has an extremely crucial element to it. Of the top 30 or so schools in attendance you also have the top 30 or earners. It has to be in the back of Network executives' minds just how much value there is in cutting down the current 69 to say 40 schools. They know that the level of destruction necessary to separate Vanderbilt, Northwestern, and other of the bottom quarter of the SEC and Big 10 schools from those two conferences would kill football.
This is why in the last two realignment moves you have seen decapitations of the existing conferences. Does any doubt that the Big 12's value is significantly harmed in commercial value by the removal of Oklahoma and Texas? Does anyone doubt the PAC 12's value was severely damaged by the loss of the Los Angeles market? No.
Should the SEC acquire Florida State and Clemson as you suggest ESPN might consider so that they could pick up product which not only built up the ACC but enhanced the value of the product moved without detracting the lowball payments they already make to the Big 12, PAC and ACC (3 contracts not more than 5 million apart from another in value) what might they be doing beside coalescing more lower grade rights packages, which I might add is perfect for streaming?
The answer is creating the network's dream conference, which may yet also be undervalued.
The SEC clearly just excised tow top 7 products (most years). Adding Florida State to that is yet another top 10 product. Adding Clemson is a top 30 product. Who is then left? Ohio State, Michigan, Penn State, Wisconsin, Nebraska, Michigan State, Iowa, and Notre Dame. And to complete a top 40 Washington, Oregon, Stanford, Arizona State, Virginia Tech, and North Carolina if you are looking at a combination of Value, markets reached, and revenue generation.
If you partner with FOX, which face it is a point of mutual self interest between the two as each has a stake in the other, and as networks standing against streamers to a certain degree, and with both owning are partnering with other OTA networks, all of which share mutual common interest in sports advertising in their mode of broadcast, the picture of what is actually happening becomes much clearer.
One self contained upper tier split between to 20 schools conferences, 24 if things get sloppy, makes both networks and their partners a helluva lot richer, via the exclusion of brand and value and revenue generation by said collective.
Meanwhile Amazon and other streaming companies, including those owned by networks partnering in the SEC/Big 10 contracts still make money off of the other 29 to 32 schools which have lesser fan bases but plenty of viewer interest.
The decapitations were no accident. Now the mop is what is left in the PAC.
Interesting stuff.
(01-07-2023 10:49 AM)JRsec Wrote: Here is where the school angle comes in and where the sloppiness begins.
The only schools which California and Stanford care about are Washington, U.S.C., UCLA, and to a lesser extent Oregon. The rest were necessary interlopers to keep the PAC viable and Oregon State and Washington State were luggage they had carried since their inception. These are the schools that want to be together in the Big 10 and these are the same schools, perhaps Oregon excepted which the Big 10 academicians wouldn't mind seeing in the consolidation.
For any kind of amicability moving forward this group has to stick together. And at 24 a West Coast division of six makes sense in a lot of ways for the Big 10.
California, California Los Angeles, Oregon, Southern Cal, Stanford, Washington
Those schools form a West Coast bastion of interest and West Wing of academic stalwarts.
The move implies for geography's sake that the Big 10 is looking at 20 total members and taking 4 more to the West leaves 4 slots to the East.
I dunno. It's really looking like Cal burnt that bridge to the ground.
Apparently, Washington is the prize that's left. Stanford is too, but no one seems to know for certain if Stanford's interested in joining the Big10, due to travel issues. (I read lots of words, but not reading much that's directly attributable to Stanford themselves.)
So 2 pairs on the west coast with Stanford in between is probably enough.
Adding Colorado could add a shorter trip for the west coast schools as a 6th, if wanted, plus it adds a new market. But it isn't "mandatory", I think. But I would imagine they would jump at joining, even for initial reduced payout, if that's still a thing.
(01-07-2023 10:49 AM)JRsec Wrote: If the SEC adds Florida State, Clemson, and Virginia Tech, (I know sounds odd) they have added 36.2% of the total value of the ACC. You know who is #4 in value in the ACC? We are talking total economic impact for their region here as attributed by the Wall Street Journal. Georgia Tech which accounts for another 9% followed by Miami, followed by N.C. State, followed by Louisville, followed by North Carolina. Ah, but that is football valuations only. Add in hoops and in the ACC things change. The top 4 are Florida State, Clemson, Virginia Tech and North Carolina all of which ESPN would dearly love to hold onto. Those 4 represent 40.6% of the total value of the ACC. Syracuse is 5th, Duke is 6th and North Carolina State is 7th.
Cadre applies here as well. If the SEC took Florida State, Clemson, and Virginia Tech in order to land North Carolina it would need to be prepared, especially should it eschew a lagging Virginia which is a bud of UNC, to take Duke, N.C. State, if you follow the money, Georgia Tech, if you choose to eliminate the Big 10 from Florida then Miami.
Ignored in this are Syracuse (which is out of region for the SEC), Louisville (which is still a consideration because as a duplicate they are more valuable than a third North Carolina school), and one of Miami and Georgia Tech though both could still squeeze in.
This isn't an SEC issue, so long as all 8 are paid by the network. But in the SEC's case the best expansion move for the value and for revenue and markets is to add Florida State, Clemson, Virginia Tech and North Carolina. If Duke is the price for North Carolina as it was in 2011, then that addition value wise still works. If the North Carolina University Systems board wants N.C. State the value difference between the Wolf Pack and Blue Devils isn't much. Georgia Tech closes out Atlanta and Miami cinches Florida. If Kansas prefers the Big 10, and they would that leaves Louisville in this scenario and the SEC fans should be fine with this because their total valuation is actually the highest in the whole ACC for all sports combined.
FSU, Clemson, and VT are, by most accounts, great adds for the SEC.
In my opinion, adding NC would come down to how soon it happens. If this year? Likely, due to current circumstances (like espn having the media deal for both conferences). Though I think the first three would have a much easier time getting votes (to allow them to leave/free them of the GoR), than NC might. But really (besides WF), none of the rest of the southern schools after those 3 would be "easy" votes, I think. So it's worth trying for, I think.
I'm not sure I understand why NC state seems to be so low on people's radar for realignment. It's a decent sized school, and academically it would seem to be among that group of "near AAU" schools.
Miami and GT are interesting in that they do seem to have better ties to the former BigEast schools. So, while the money might move them, they might not be as motivated to leave as some of the others. And so might have less "sour grapes" at being "left behind".
Plus, if ND stays in the ACC. There's an additional value for those two, to stay and play ND.
I think FSU is the easy no brainer. Clemson should happen, but might get rebuffed due to already-in-conference South Carolina. Whether VT gets in likely will come down to whether Clemson or an NC partner gets in or not. I also don't think VT gets in unless a North Carolina school is added, for contiguous reasons (yes, I'm aware of Kentucky, but still...).
Louisville, on the other hand, is an interesting choice. Though that may come down to whether we know if Kentucky would be happy about their addition, or not.
So all-in-all, I think the smart move, in pairs, in order, is:
a.) FSU and Clemson
b.) NC and NC state
c.) VT and Louisville
d.) maybe Miami and GT
(01-07-2023 10:49 AM)JRsec Wrote: It seems to me the work around and help could come from the Big 10 which would still have 4 slots open and you would have to think that in this kind of large coalescing that Notre Dame would reconsider their academic placement over their sports affiliation. Virginia and Notre Dame accompanied by Duke gives the Big 10 3 of their final four and Kansas would make it solid enough while helping to balance out divisions.
ND won't happen anytime soon.
But Virginia and Duke would be smart, solid additions, especially if they cannot get NC.
I think Virginia and Kansas to strengthen each of the contiguous flanks of the conference. And also Kansas and Duke as bball powers. And AAU/academics for all 3. Makes them good choices
Then Stanford for 4, and maybe WA and OR for 6.
If Cal manages to redeem themselves "somehow", could add them and Colorado for 8, but I see that as unlikely.
So add Kansas and Stanford now, and VA and Duke later, and worry about the rest, after that.
And yes, 22 is really starting to be the better top number for both conferences. going to 24 is easily possible, but seems less "necessary".
(01-07-2023 10:49 AM)JRsec Wrote: ...
Now let's revisit some hard facts:
The most profitable remaining expansion and the most concise for Networks and Conferences would be for the Big 10 and SEC to move to 20 each with these schools:
SEC: Clemson, Florida State, North Carolina, Virginia Tech. Big Ten: Notre Dame, Oregon, Stanford, Washington.
So why not just do that? Those schools' values (Notre Dame excluded) are largely determined by the schools they play annually and with which they have intense rivalry. To remove them wholly from that setting and simply graft them into new homes without historical rivals is damaging the very product you wish to benefit from having. This is why more West Coast teams are essential to USC and UCLA being maximized. It is why North Carolina has to keep at least a cross conference annual with Duke and Virginia, and why having N.C. State with them is important. It is why Clemson and South Carolina need each other as well as Florida and Florida State and Miami need each other. Those games draw the interest of their whole states. Georgia Tech is important to Auburn and Georgia, but Atlanta is important to the SEC. And people had better get used to Louisville. Like'em or not they have a balanced and dependable and profitable athletic program.
We've taken Missouri, Rutgers, and Maryland and even South Carolina and Arkansas and Nebraska piecemeal and how very long it has, or is, taken/taking them to adapt. We need to think holistically and not line item piecemeal if we want to preserve the value of the schools we take.
It's almost always messy. I would be surprised if this is any different.
But I agree.
The problem for the Big10 is that the ACC schools are less likely to vote to allow VA or Duke (or NC for that matter) to leave if their chosen target is the B10.
So I think the ball's currently in the SEC's court. But the longer they wait, the better it looks for the Big10.
Sitting on their hands just seems less and less a smart option. So let's get this ball rolling : )
Skyhawk there are some things you don not grasp.
1. South Carolina wanted to sponsor Clemson's membership in 2011. The second South Carolina school issue is one that is a market duplication issue from a smallish state. But 80,000 attendance and top 26 revenue (while in the ACC) and the recency of brand building are in Clemson's favor.
2. I had to do this before when all the Big 10ers and many Texas and Oklahoma message board posters were saying Texas and Oklahoma would not move to the SEC. The frequency of each's talks with the SEC and their desire to enhance business models, not academic associations which they have through AAU anyway, were the crux of the discussions beginning in 1987. Every indication going back well over a decade says UNC if it moved would stay in the Southeast. It is a donor and fan base issue, not an academic preference. I fundamentally disagree that the longer the GOR drags on the more likely it is that UNC and Duke head to the Big 10. Virginia is now a beltway school so if they wanted the Big 10, I could easily see it. If Duke and UNC no longer want to stay together then Duke would easily gravitate toward the Big 10, that is because it is over the sphere of influence where (New England, New York, New Jersey) much of their enrollment calls home. N.C. State on its own is not accretive to the SEC. UNC carries the state relatively easily which shows their overall strength since 4 North Carolina schools are represented in the state.
This one will boil down to which school is free to be the UNC companion, rival Duke, or 2nd state school N.C. State if mandated by the BOG of the UNC system.
3. Sankey seems set on Southeastern and Southwestern entrenchment by some of his conversations where he emphasizes, he could see expansion to solidify those areas. This would be in keeping with Mike Slive's directive from the presidents who emphasized staying a predominantly Southern conference.
4. Georgia Tech would jump at an SEC offer today. Bobby Dodd's feelings are no longer an issue, their sports travel would be much cheaper in the SEC East, and the sports fit is there for them. They still have considerable market value which isn't monetized effectively in the ACC. So, while not an SEC priority, and even though UGa carries the simple majority of Atlanta, coupled with Georgia Tech Atlanta would overwhelmingly be an SEC city. Is that enough for their inclusion? At 20, no. At 24? Likely.
5. Miami is much murkier at 24. They would add an area not considered SEC strong at this time. FSU and UF carry the state handily. Miami would be a brand recognition addition which would allow more SEC games played in Florida weekly and therefore meet internal demands by member schools for more games in Florida and likely please the network.
6. Louisville? What a paradox. Not a beloved choice but has the highest valuation by the WSJ in the ACC. And is the ACC's second highest revenue generator. In a purely business move they should be in. It's truly another market duplication issue only this time with the other state school, Kentucky, not really supporting it.
I don't think the SEC or ESPN would get bent out of shape by a Virginia move to the Big 10. ESPN may be the only one which would be miffed by a Duke departure. But neither the SEC nor ESPN will simply turn North Carolina loose without a fight which is why I think in the end UNC gets to pick a travel companion. Then the SEC looks to lockdown the Deep South. I'd very much like to see us add Kansas as it makes a nice western 6 and adds hoops and a rival for Missouri. I don't know if that happens or not. I guess it depends on how things break to the East.
7. The long shot GOR beater is simply a merger. You could have merger if unequal media distributions become possible. The ACC/SEC could add Kansas and be at 32 full members with ND as a partial. Then you have 1 of the 2 leagues.
...do not grasp, am unaware of, disagree with you on, etc. sure : )
1.) Wasn't aware of that. Interesting. Thank you for the info : )
2.) Texas was going to leave out the door on the B12 as soon as is enough criteria was met. And post-2010 (if not earlier) OK made it clear they were joined at Texas's hip. The idea that was being floated around back then that Texas was being "forced" to leave the B12, by the other schools actions, was kinda ridiculous on the face of it, imnsho.
And you're welcome to your opinion, of course, but I think NC could go either way - depends on the offer and the circumstance, I would think. And so that being true, the SEC (and espn) have much better chance at gaining NC on the short term if simply because right now, due to the GoR, they control the power of the purse. The closer to the end of the GoR, the less control they have, and the better chances the B10 has. It's just simple math.
And who knows about the whole longtime rival/"partner" thing. TX and OK upended that a bit. To get NC, I remember Delaney saying he'd be willing to take all 4 (NC, NC state, Duke, and VA). I don't know if he had the internal votes for that statement, but I think it's a viable option. I think the SEC is likely to be more picky about that - I think they're really only interested in NC. But if NC goes to the B10, I could imagine the SEC inviting NC state in order to get into that market. Whereas, while I think the B10 would happily invite Duke without NC, I don't think the SEC would. It comes back to each conference having different priorities, and different criteria for inclusion/invite.
Similar situation for VA and VT. B10 isn't inviting VT, but would invite VA; while the SEC would seem to prefer VT over VA.
Short version - I think (if the GoR isn't an issue), Duke is more likely to the B10 and NC state is more likely to the SEC, but flip a coin on NC. But the SEC has the advantage right now due to the GoR, and espn being the media partner of both conferences.
3.) that does seem to be the case. It's possible that even VT and Kansas could be considered too far north...
4.) I dunno about GT. If it was only about the money, sure. But - and I can't put my finger directly on it - but it "feels" like there is more going on there. But hey, if they are willing, and GA is willing, and the rest of the SEC votes yes, then who are we to disagree? : )
5.) Yesss, but I also see a lot of detractors out in punditry land (and on this forum). Complaints about stadium and institutional "fit" on the SEC side, and academics/AAU on the B10 side. So of the Florida schools, I think Miami has less of a chance to be added to the P2. They might get into the SEC ahead of USF, but if so, just barely, I think.
6.) Yes - If Louisville does not have a Kentucky issue, I would think they were a shoe-in for the SEC. Though, again, they are on the north side of that geographical footprint - included, but barely.
7.) True, I suppose. And as you know, I was a proponent of the two-tier revenue idea. But looking at espn's moves, I think they like having ACC and SEC as separate conferences. There are some solid benefits there.
If anything, I think they'll try to beef up both.
8.) - not one of your numbers, but to sum up : )
NC could go to either of the P2.
If that's not available, and if we're talking 2, I think the best 2 for each from the ACC is - SEC: FSU and Clemson; B10: VA and Duke.
If either gets NC, then they go for 4 - SEC: NC, and NC state or Duke; B10: NC and Duke
If the other conference gets NC, then going for 4 - SEC: VT, and NC state (to get those states/markets); B10: probably nothing else beyond VA and Duke.
GT's possible for either conference, but not as likely as the ones listed, I think.
YMMV, of course : )
(Edited to add that of course the B10 could add FSU (and either GT or Miami as travel partners), but if that happens, then the SEC was really asleep at the wheel : )
(This post was last modified: 01-08-2023 09:54 PM by Skyhawk.)
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